Dow futures have been routed in the last two loosing close to 13.5% of the value. This time they say that the issue is the trajectory of the interest rates.
For months the stocks were moving in a single upward trajectory and it seemed that nothing could stop the over exuberance of the investors. Once again Mr. market has shown that it cares for no one and follows pure demand and supply criteria. Are we going to reverse and when its too early to tell but the history of Dow is clear. In the last 70 years markets have recovered from every single drop and gone on to create higher highs. Every correction has been an opportunity to put capital to work !!!
For months the stocks were moving in a single upward trajectory and it seemed that nothing could stop the over exuberance of the investors. Once again Mr. market has shown that it cares for no one and follows pure demand and supply criteria. Are we going to reverse and when its too early to tell but the history of Dow is clear. In the last 70 years markets have recovered from every single drop and gone on to create higher highs. Every correction has been an opportunity to put capital to work !!!
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The market hit the target for H&S the next day of the printing of the idea. The higher than expected inflation on Feb 9 did not deter the investors and the bulls charged in. It has been 7 days since then and the Dow has recovered almost 2000+ points.